Non-resident K-1s for New York & New Jersey

[rhartmul]

I received K-1s (from BXPE) with information for NJ (NJK-1) and NY (IT-204-IP). I am a nonresident. Both of these showed an ordinary business gain of $619 for the respective state.

From what I can tell, this is below the New Jersey filing requirement, but New York doesn't seem to have one.  When I create a TurboTax New York state return, I cannot figure out which line to enter the New York share.  All the questions seem to be around wages and/or an actual business.  TT online help says IT-204-IP is beyond the scope of non-professional tax software -- is this really the case?

[DavidD66]

Your question above says "When I create a TurboTax New Jersey state,"; however, you also mentioned the $619 is below the NJ filing threshold and you reference Form IT-204-IP, which is New York K-1 Form.  So, I am assuming you are try to prepare a New York non-resident return.  What you need to do is enter the K-1 from BXPE in the federal section of the program.  Next, start (or continue) your New York return.  As you go through the interview, several pages in you will see a screen with "New York Income Allocation".  One of those items will be "Rentals, Royalties, Partnerships".  It will show the federal amount (from your K-1s) and have a box for "New York Source Portion".  If you received Form IT-204-IP it should be the amount of line 1.C of "Partner's share of Income, deductions, etc.".  That's it.  

[rhartmul]

Thanks for getting back.

When I get to the NY Income Allocation screen, it shows my federal amounts for Interest, Dividends, and Cap Gains, but shows my Federal Rentals, Royalties, and Partnership number as $0 -- even though my BXPE K-1 1065 has $619 in Line 1 Ordinary Business Income.  So, to me, it looks like there is no amount to allocate a NY portion to.

I do have carryover Line 1 losses from prior years on other Private Equity investments in a QOZ, so maybe Turbo Tax is using that to offset my federal amount?

If I put $619 in the NY portion, it does say I owe $44 in tax, but I'm not sure that's correct.

To check my logic, I went and recreated everything in H&R Block online.  Their NY state tax interview works differently, and actually walks me through my passive income form by form.  When I do that, I allocate the $619 for NY from my BXPE form and then when I get to my other one (CIM), it shows a ~$7000 Federal business loss for 2025, with the NY portion 0.  It too sees to be using this to offset my federal amount and shows my NY tax at 0.

[DaveF1006]

Entering $619 in the NY is correct if the $7,000 carryover losses were not New York-sourced. If the losses were also NY-sourced, your NY income is effectively $0, and you should owe no tax.